Stock markets rally amid easing geopolitical tensions; Sensex climbs 500 points

Mumbai: Stock market benchmark indices Sensex and Nifty rallied nearly 1 per cent on Friday, driven by optimism surrounding easing geopolitical tensions and fresh foreign fund inflows.

Renewed hopes of a diplomatic resolution between the US and Iran, along with a 10-day ceasefire between Israel and Lebanon, have materially improved global risk appetite, a market analyst said.

The 30-share BSE Sensex jumped 504.86 points, or 0.65 per cent, to settle at 78,493.54. During the day, it surged 564.77 points, or 0.72 per cent, to 78,553.45.

The 50-share NSE Nifty climbed 156.80 points, or 0.65 per cent, to end at 24,353.55.

From the 30-Sensex firms, Hindustan Unilever, Power Grid, Reliance Industries, Bharat Electronics, Tech Mahindra and Titan were among the major winners.

In contrast, Sun Pharma, Mahindra & Mahindra, Larsen & Toubro and HCL Tech were among the laggards.

Brent crude, the global oil benchmark, dropped 3.07 per cent to $96.34 per barrel.

"The primary catalyst for today's strength was the de-escalation in West Asia. Renewed hopes of a diplomatic resolution between the US and Iran, along with a 10-day ceasefire between Israel and Lebanon, have materially improved global risk appetite.

"This has reduced concerns around a sustained spike in crude oil prices, which had earlier weighed on inflation expectations, currency stability, and overall market sentiment," Hariprasad K, Research Analyst and founder, Livelong Wealth, said.

In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended lower.

Markets in Europe were trading higher in mid-session deals.

US markets ended in positive territory on Thursday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 382.36 crore on Thursday, according to exchange data.

"The domestic market closed the day higher, supported by improving prospects of a Middle East resolution and a reversal in FII flows into net buying. A ceasefire between Israel and Lebanon helped keep crude below $100/bbl, easing pressure on import-dependent economies," Vinod Nair, Head of Research, Geojit Investments Limited, said.

On Thursday, the Sensex declined 122.56 points or 0.16 per cent to settle at 77,988.68. The Nifty dropped 34.55 points or 0.14 per cent to end at 24,196.75.